CANADA STOCKS-TSX gains on Fed, housing, led by resources

Fri Aug 21, 2009 11:04am EDT
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* TSX rises 1.07 percent to 10,814.79

* Firm commodity prices lift materials, energy

* Fed, U.S. existing home data boost sentiment (Adds details)

By Ka Yan Ng

TORONTO, Aug 21 (Reuters) - Toronto's main stock index drove higher on Friday as risk appetite gained momentum with an upbeat read of U.S. home sales data and stronger prices for key commodities such as gold and oil.

Better than expected sales of previously owned U.S. homes in July, which also recorded their fastest pace in nearly two years, were the strongest sign yet that the U.S. housing market was pulling out of a three-year slump. [ID:nNYZ000483]

A further lift came after U.S. Federal Reserve Chairman Ben Bernanke said the global economy appears to be on the mend after a deep downturn, but he cautioned the recovery is likely to be sluggish and risks remain. [ID:nWEQ001325]

At 10:33 a.m. (1433 GMT), the S&P/TSX composite index .GSPTSE was up 114.28 points, or 1.07 percent, at 10,814.79, as it approached its highest level of the week. All 10 groups were higher.

"The U.S. is leading us up for today," said John Kinsey, portfolio manager at Caldwell Securities Ltd.   Continued...